HOW HEDGE FUNDS USE MACHINE LEARNING? скачать в хорошем качестве

HOW HEDGE FUNDS USE MACHINE LEARNING?

"Man vs machine" on Wall Street is a big topic for arguments. Artificial intelligence is far from taking over the industry of active asset management, but there are certain strategies where autonomous learning algorithms add significant value. Mean reversion statistical arbitrage is one of those strategies. Many quant teams have been actively exploiting machine learning to process big data, extract deep factors and model market impact. ML powered stat arb has limitations though, it is capacity constrained and requires sizable investments in building infrastructure, buying data, hiring and retaining quant talent. Quants are not the only users of ML and big data in asset management. Fundamental discretionary hedge funds, banks and even private equity managers have started using products of machine learning in the form of increasingly popular alternative data. In the future every asset manager regardless of the strategy will have at least some exposure to information products created by applying machine learning techniques to processing big data. 00:00 Challenges of machine learning in application to trading 01:04 "Does ML outperform human traders?" is an incorrect question to begin with 01:50 Statistical arbitrage, mean reversion 02:21 Why arbitrage opportunities exist in seemingly efficient markets 03:26 Obvious signals get overcrowded, quants turn to ML and alternative data 04:03 Risk of false positives; signal explainability vs statistical significance 04:28 Combining weak signals, portfolio optimization 04:54 Execution limitations: short sales, market impact 05:19 The biggest misconception about machine learning hedge funds 05:45 ML fund is not an overnight success - It took Renaissance Technologies 25+ years to grow from prop trading to an institutional fund manager 06:16 Why AI is not taking over the investment management industry? 06:42 Scalability issue, capacity constraints 06:55 The way for ML funds to grow AUM: in addition to flagship Medallion that is closed for external investors, Rentech launched two long term institutional funds (REIF and RIDA) 07:26 ML in asset management beyond quant trading; alternative data LinkedIn -   / olgakane   Twitter -   / arkanealpha   #MachineLearning #HedgeFunds #ArkaneAlpha